Garrigues advises banks on Novobanco IPO

The law firm Garrigues is providing legal advice to the banks selected for Novobanco’s initial public offering (IPO). The team is being led by Marta Graça Rodrigues.

The lawyer is a partner in Garrigues’ Corporate Department, where she practises in the areas of corporate law, mergers and acquisitions, capital markets, corporate governance, private equity, financial regulation and commercial contracts. She has experience in all types of corporate transactions, particularly those involving regulated entities, as well as in advising companies on a recurring basis, including listed companies.

Marta Graça Rodrigues has been recognised for her expertise in her practice areas in the main international directories, including Chambers & Partners, Legal 500, IFLR1000 and Best Lawyers. In 2021 and 2022 she was included in IFLR1000 Women Leaders as one of the leading lawyers working in the areas of financial and corporate transactions in Portugal.

On Novobanco’s side is Linklaters. Officially, the bank won’t comment on the hiring of Linklaters, but the law firm itself — whose office in Portugal is headed by Marcos Sousa Monteiro — confirmed to ECO that it is “acting for Novobanco on the IPO issue”.

Novobanco has chosen six financial institutions to organise its initial public offering: Bank of America, Deutsche Bank and JPMorgan – who were the first to be chosen – and BNP Paribas, Jefferies and Keefe, Bruyette & Woods (KBW). A Novobanco IPO could be the biggest stock market listing since EDP Renováveis in 2008 and generate the sixth largest listing on the main national index, the PSI.

The scenario of an IPO for the bank, 75% owned by Lone Star (with the remaining capital held by the Portuguese state and the Resolution Fund), has been admitted by the CEO, Mark Bourke, on several occasions, although he doesn’t rule out a direct sale. Whatever model is chosen, Bourke points out that the operation could take place in the second or third quarter of this year.

In February, BCP admitted to evaluating the process. “If the price is right, if it creates value for shareholders and makes sense for the Portuguese economy, we could consider it”, admitted Miguel Maya, although he dismissed any interest in taking part in a possible IPO. Earlier, the chairman of Caixa Geral de Depósitos, Paulo Macedo, said that “all the hypotheses” of buying another bank were on the table in order to preserve its leadership in the market.

The governor of the Bank of Portugal believes that the IPO of the fourth largest bank in the market would be “a good result for the functioning and competitiveness of the banking sector”. But Mário Centeno has reservations about Caixa’s interest. “It’s a business decision with systemic consequences that have to be analysed”, he said.